Short Sales Ban NOT Related to Real Estate!

Short Sales Ban NOT Related to Real Estate

Last Friday, Securities & Exchange Commissioner Christopher Cox made a dramatic move today to show that the SEC is doing something: banning short sales of 799 financial stock.

"This action, which would not be necessary in a well-functioning market, is temporary in nature and part of the comprehensive set of steps being taken by the Federal Reserve, the Treasury, and the Congress," Cox said. The ban went into effect immediately and expires at midnight on October 2, 2008.

NOTE: THIS HAS NOTHING TO DO WITH REALTOR AND INVESTORS NEGOTIATING A SHORT SALE, OR REDUCTION IN PRINCIPAL AMOUNT OWED ON A LOAN.

Let me make this very clear: this ban on short sales has nothing to do with real estate short sales that we're primarily focused on. PLEASE FORWARD THIS E-MAIL TO REALTORS AND INVESTORS YOU KNOW, AS THERE IS MASSIVE CONFUSION RIGHT NOW. A short sale when it comes to the stock market is generally considered this: short sellers borrow stock in a company that they don't actually own and then sell it, hoping that they can buy the stock back at a lower price and make a spread on the difference. This leads to wild swings in a stock price, and perhaps an exaggerated movement--and such was the case this last week when financial stocks plunged.

So remember, the ban on short sales has absolutely nothing to do with the “short sale” of homes!

San Diego Short Sale Experts – www.SDShortSaleExperts.com – Real Estate & Realtors